An estate plan determines what will happen to your property and assets when you die or can no longer manage your own affairs.  It can be confusing and time consuming but is very important to have and can make a difficult time less stressful for those you leave behind.

Here are four common items that are put into an estate plan:

  1. Will/Living Trust: A will or living trust are the main components of an estate plan.  A living trust is a legal document that places your assets into a trust to be used by you during your lifetime and transferred to your assigned beneficiaries at your death. A will is a legal document that states who will inherit your property when you die. When a will is used in conjunction with your living trust, it acts as a safety net for any personal assets that weren’t placed in the trust during your lifetime.  If you die without any will at all, your estate would go to probate and would pass to certain heirs according to North Carolina law, which may not be according to your wishes.
  2. Beneficiary Designations: Beneficiaries are people, trusts or organizations that you wish to give your assets to upon your death.  The importance of having a beneficiary and contingent (backup) beneficiary is crucial to ensure that your assets go to where you intend.  Assets such as life insurance, bank accounts and investments will have beneficiary designations that you need to review every so often to make sure you have the correct persons getting those assets.
  3. Power of Attorney: A power of attorney is written authorization for someone to act on your behalf if something were to happen to you.  The two main types are healthcare power of attorney and durable power of attorney. A healthcare power of attorney is a legal document in which you name an individual to oversee your medical care and make healthcare decisions for you if you can’t do so yourself.  A durable power of attorney appoints a trusted person the authority to handle financial transactions on your behalf. These are both important to have so that you can prevent the court from having to make these decisions for you.
  4. Guardianship Designations: If you have minor, guardianship designations should be included in your estate plan as a part of your will.  If something happens to both parents, guardianship designations will let the courts know whom you wish to take care of your children. In the absence of guardianship designations, the courts will decide who will take care of your children and they may decide on someone different than who you want.

Working with a trusted attorney who understands the estate laws in North Carolina can make the planning process run much more smoothly.  We, at Thornton Law Firm, have the experience and would be honored to guide you through the process of planning your estate. Contact us today!